If your dealership doesn't already have a web site, it will very soon. Whether you like it or not, the Internet is a business "fact." And it will become more of a "factor" in the coming years. Consider this: Dealers with a site are reporting five sales per month now compared to 2.5 sales per month a year ago.
Today, about half of all American automotive dealers have a web site. But by the year 2002, experts project that four-fifths of you will be online. Why? Just look at the numbers. By the end of 1998, 73,000,000 Americans, approximately 27 percent of our total population, were "regulars" on the World Wide Web. Most of these "surfers" are profiled as young, affluent, and aggressive. They are 25 to 40 years in age. Over 41 percent are college educated, and they have average annual incomes in excess of $50,000. But let's not forget our senior citizens: Eight percent of adults aged 65 and over are online-they represent three percent of all adults online.
These are your customers. And they are online. Developed and implemented correctly, an effective web site will provide lead generation, pre-qualifying, relationship building, customer service, and follow-ons which will support and expand your existing business.
But as Internet usage increases, "having" a web site will not be enough. Your site must be effective, and this begins with an effective plan that integrates your goals and the customer's needs. Your site should provide information...to both you and your customers. Your site should positively reinforce your relationships with these customers. This more "personal" marketing approach will create more detailed information about your customers, and you'll be able to use this information to sell, upsell, and cross sell. Think about this fact: It is 4 to 10 times more expensive to acquire a new customer than it is to retain an existing customer. If you reduce your customer defection by only 10 to 15 percent, you can double your profits.
To establish or rebuild your web site, look at your site as a business tool. Be sure it provides you with what you need and with what your customers value.
At the "front end," your site should be presented to maximize the visitor's ability to:
· do product research and fine tune their product selection (models, options, warranty, colors, etc.);
· consider finance options and make contact with you (financing options, is it better to buy or lease, what promotions are currently available, your price quote, email contact, dealer appointment).
At the "back end," you'll want your site
to easily track and provide you with:
· a comprehensive analysis of your site traffic every month;
· a regular visitor feedback mechanism (surveys and email forms) which will allow you to enhance your site's more popular, more effective areas, and fix or eliminate those areas that are not working.
To expand the interest and content of your site, you may want to:
· Advertise/promote your site address online and through the traditional media;
· Submit your site to the various web search engines;
· Create "online only" promotions;
· Provide warranty information, a parts link, and email maintenance reminders;
· Partner with a provider to offer email;
· Connect with local businesses to provide coupons, contests, giveaways;
· Use your site to convey community news and events.
Your online priorities should be to increase sales to both old and new customers, reduce your costs (of the actual sale by shortening the sales cycle), improve the loyalty of your customers, enhance your knowledge of your customers, and convey, easily and inexpensively, information to them. In other words, your sales costs will go down as your customers come in knowing what they want. You will be better able to leverage the promotion and informational investments of your manufacturer(s) and you should be able to reduce support costs while you increase service revenues.
What's the real reason to be online with an effective web site? Right now, more than a quarter of all new car and truck buyers are using Internet buying services. And this number is projected to grow between 50 and 60 percent just within the next year. You can't wait.
Web site "Do's" and "Don'ts"
DO...
-Include your location(s) with map(s)
-Provide contact information (phone, fax, and email)
-Include "testimonials"
-Provide links to manufacturer information
-Make sure your site is listed correctly with your manufacturer(s)
-Provide service/appointment information
-Establish a pre-owned car showroom
-Provide appropriate forms for appointments, sales, parts
-Make site searchable (provide a site map)
-Optimize your site for a 28.8 kbps connection
-Have site interact with "enterprise databases" (DCS, ADP, etc.)
-Utilize the "3-click" rule to all site content
DON'T...
-Use "welcome to our site" wordage (which is a waste)
-Overdesign your site (let the manufacturers do this)
-Have broken links
-Have large or missing graphics
-Have typos or grammatical errors
-Develop a home page which scrolls forever
-Use a confusing domain name
-Require "plug-ins"
-Have incomplete contact information
Christopher Paine is Division President of Internet Outfitters, a division of AppNet Systems, Inc. He recently gave a presentation on advanced web site design at the 1999 National Association of Automobile Dealers Association Annual Convention in San Francisco.